This article is from the Australian Property Journal archive
A PRIVATE investor has snapped up a service station in Melbourne’s suburb of East Ringwood for $4.5 million in a hotly contested auction conducted by Jones Lang LaSalle.
The Shell Service Station with Coles Express and Hungry Jack’s was on the market at $3.5 million but three bidders saw the property sell for $900,000 above the reserve price.
JLL’s Stephen Bolton and Matthieu Lucas of Jones Lang LaSalle managed the sale.
Bolton said the strong long term lease to Shell together with the significant land size were major contributors to the successful auction result, which achieved a 5.7% yield.
“A sub-6% yield is very strong in the current environment and is a great result for the vendor. We received strong interest in this property from the moment it was listed which can be primarily attributed to the secure lease to a Blue Chip tenant as well as the significant land area of approximately 6,000 sqm which has future development potential (STCA).
“Shell’s lease returns a current net rental of $252,204 (approx.) paid 12 months in advance with continuous long term growth to November 2018 (plus a further 10 year option) which is an excellent investment opportunity,” he added.
The property is located at 5-11 Mt Dandenong Road, East Ringwood. It was previously owned by a Sydney-based syndicate group and was left to sell from their National Portfolio.
Australian Property Journal
